FRANKFURT: The European Central Bank “will succeed” in bringing down sky-high inflation, president Christine Lagarde said in a holiday message on Friday, as the eurozone braces for more interest rate hikes in 2023.

Eurozone consumer prices soared to a record high this year after Russia’s invasion of Ukraine sent energy and food costs surging.

Inflation in the euro area slowed in November for the first time in a year and a half, but at around 10 percent was still five times higher than the ECB’s target.

“I know that high inflation hurts everyone, especially the poor,” Lagarde said in a video message ahead of the Christmas and New Year’s holiday season.

“I promise that we will do our utmost to bring inflation down,” she said. “And we will succeed.”

Like other central banks around the world, the ECB has responded to runaway inflation by aggressively lifting interest rates in recent months.

Following last week’s hike of half a percentage point, the ECB’s three key rates now stand 2.5 percentage points higher than at the start of the year.

“We are raising interest rates and we will raise them further, at a steady pace, until they are at a level which ensures a timely return of inflation to our two-percent medium-term target,” Lagarde said.

Lagarde told reporters last that week that the eurozone would see more 50-basis point increases “for a period of time”.

The ECB chief also used her end-of-year message to welcome EU member Croatia to the eurozone.

“I’m really happy that our euro-family is expanding,” Lagarde said.

“Croatia will be the 20th member to join the euro area on January 1, something I will certainly be celebrating as we ring in the new year.”